In 2015, the average total annual income per individual in Iceland was 5.4 million ISK, or 450 thousand ISK per month. The median of the total income was 4.3 million ISK or 360 thousand ISK per month. The median of the total income increased by 6.4% from the previous year and by 63.3% in the last 25 years in fixed price per year 2015.
Outliers can influence the average income, especially when it comes to capital income. As outliers have only minor influence on medians, the median will be used when referring to income in the text below.
Total income highest in Garðabær
Total income is composed of income from work, capital income and other income. In total income, income from work weighs the most, then other income and finally, capital income.
Total income was highest in Garðabær and Skorradalshreppur in 2015, or 4.9 million ISK, followed by Seltjarnarnes and Fjarðabyggð with median total income of 4.8 million ISK. When comparing municipalities one must keep in mind that the population, on which the data depends, varies considerable, e.g. in all 29 individuals in Skorradalshreppur while there are 10,215 in Garðabær in the year 2015.
When considering the relative change in total income over the last 25 years, 1990 to 2015, the change is greatest in Skorradalshreppur or 93%, followed by Hvalfjarðarsveit (85%) and Tjörneshreppur (84%) in fixed price per year 2015. Although the relative total income change in Tjörneshreppur is the third highest, the total income is now as before, in the lowest income quintile, compared to other municipalities. The smallest relative change during the period was in Tálknafjarðarhreppur, where personal total income increased by 23%.
Income from work highest in Fjarðabyggð
In 2015, income from work was highest in Fjarðabyggð, 5.0 million ISK, followed by Garðabær, 4.8 million ISK, and then Kópavogur, 4.7 million ISK. At the same time income from work was lowest in Helgafellssveit, 1.7 million ISK, and Svalbarðshreppur and Húnavatnshreppur, 2.3 million ISK. Included are only those receiving income from work, i.e. conditional median.
About income statistics from tax returns
Statistics Iceland publishes information on income for the period 1990 to 2015 by municipalities and sex. This comprises total income as well as income from earnings, capital gains and disposable income including other income and taxes. Results are based on individuals’ tax returns.